Bill > H5106

This bill proposes to limit rate increases for electric distribution companies by capping any rate hike at either 5.5% or the percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U), whichever is greater. The CPI-U is an economic indicator published by the U.S. Department of Labor Bureau of Labor Statistics that measures the average change in prices paid by urban consumers for goods and services. The bill specifies that the rate increase would be calculated based on the CPI-U as of September 30 of the prior calendar year. An electric distribution company would only be allowed to increase rates beyond this cap if the general assembly explicitly approves a higher rate through an affirmative action. Importantly, the bill includes an exemption for smaller electric distribution companies with fewer than 7,500 customer accounts, which would not be subject to these rate increase limitations. The bill would take effect immediately upon passage, applying a new regulatory constraint on electric utility pricing to protect consumers from potentially significant rate increases.

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